Home-based businesses are ones that operate out of the home in which the person or family actually lives. Home-based businesses are on the rise these days with new entrepreneurs joining the market every day. But there is an increased risk associated with a home-based business. After all, your home is not just a place to live in but somewhere where you run your business and spend most of your waking moments, so it becomes vulnerable to various threats. Insurance for a home-based business is crucial.
Before starting your home-based business, it’s important to consider your options regarding insurance. Here are three tips to get you started:
Home businesses have different insurance needs.
Business owners should never assume that their homeowner’s policy will cover everything they need in the event of a catastrophic loss. It is possible that a homeowners policy will provide enough coverage for some small home-based businesses, but each policy is different and many exclude certain types of risks.
Your homeowner’s policy probably won’t cover any claims stemming from your home-based business, so it’s important to consider adding a business owner’s policy (BOP). A BOP can include general liability and property coverage as well as some added protection for your business operations and income.
Special events insurance can provide loss coverage.
Get cyber liability insurance. Home-based businesses are especially vulnerable to cyberattacks because hackers know that such companies are less likely to have full-time IT staff or dedicated security systems in place. As an increasing number of businesses rely on computers and the internet for their operations, hackers have stepped up their efforts to gain access to sensitive information about customers or clients and cause damage to computer systems. Cyber liability insurance will cover any losses due to hacks, data breaches, or other types of cyberattacks on computer systems.
Get insured as soon as possible.
You should get business insurance as soon as possible. The sooner you begin working with your insurance agent, the more prepared you are for potential loss events. If you wait to get insurance, you may not have coverage when you need it most.
Protect yourself and your hard work with the right insurance for your home-based business.
Whether you’re the sole proprietor or part of a small team, your home business insurance needs will vary depending on the type of business you’re involved in and your living situation. Be sure to talk to your insurance professional about any specific questions you have regarding coverage so that you’re fully aware of what your policy covers and what it doesn’t. Staying informed about potential loss events and obtaining a business insurance policy can help you protect yourself and your home-based business.